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Jewelry shops get no orders for Diwali gifts

Chennai/ Mumbai, Sep 20 () : Jewellery shops in Chennai and Mumbai are yet to get orders for gold coins, puja vessels and pendants from corporate houses for Diwali gifts to employees.

Many of the retail and wholesale gold merchants who usually place bulk orders from bullion market have kept it on hold since they are not sure whether these corporates will come this year in view of the slowdown.

Meanwhile, dealers in mobiles, electronic gadgets, high-end watches and pens are getting enquiries from HR managers. Smartphones, iPads, home appliances like rice cookers, LED TV, cooking gas ranges, induction stoves, rice cookers and sandwich makers are on the gifts’ list.

Usually, Diwali gifts are articles made of gold or silver along with dress materials. This year, prices of both these metals are running record high. Gold has increased by 6% and silver by 18%.

Jewellery traders say that the young workforce in MNCs have little or no interest in gold or silver and HR managers who themselves are young feel that they can strike good bargains for bulk purchases. In gold trade, discounts are very little but prices are increasing. Zaveri and Co, a jewellery shop based in Ahmedabad and a leading trader in Mumbai bullion market says the demand is almost nil.

Today,the price of a 24 karat ten gms coin costs Rs 32000 and silver for same quantity is Rs 64000. For those with budget ranges from a minimum of Rs 1000 and stretching up to Rs 20,000 would not find anything much in gold and silver.

Almost 65% of those gold jewellery shops who placed orders in the expo in Delhi have put it on hold. The expo organized on the occasion of India International Jewellery week saw 862 companies take part but now those who placed orders have not come to pick up the stuff according to All India Gems and Jewellery Trade Federation.